SF5246

Purpose

• This bill provides funding to reconstruct a specific stretch of marked U.S. Highway 8, from Karmel Avenue in Chisago City to Interstate 35, and to add pedestrian and bike trails along and across this portion. It also authorizes selling state bonds to pay for the project.

Key Provisions

• Appropriation of 24,000,000 from the bond proceeds account in the trunk highway fund to the commissioner of transportation for predesign, design, engineering, and construction of the U.S. Highway 8 reconstruction. The project may include expanding to four lanes, building or rebuilding frontage roads and backage roads, and realigning local roads to manage access to and from U.S. Highway 8.
• Availability of the funds is contingent on the commissioner of management and budget determining that sufficient nonstate resources are committed to complete the project. The appropriation remains available until the project is finished or abandoned.
• Bond authority: the commissioner of management and budget shall sell and issue up to 24,000,000 in state bonds for the project, following applicable state statutes and constitutional provisions. Bond proceeds (excluding accrued interest and any premium) must go into the bond proceeds account in the trunk highway fund.
• Use of planned spending redirected: amounts that the Department of Transportation planned to spend on resurfacing U.S. Highway 8 in the Metro District 10-Year Capital Highway Investment Plan (2020–2029) must instead be applied to the U.S. Highway 8 reconstruction, supplemented by funds from this or other authorized sources.

Funding and Bond Details

• Funding source: bond proceeds in the trunk highway fund.
• Bond management: bonds up to 24,000,000 to be issued at times and in amounts requested by the commissioner of transportation, under state law and constitutional rules.
• Proceeds use: bond proceeds (excluding interest and premium) go to the bond proceeds account; the funds are restricted to the U.S. Highway 8 reconstruction project.

Project Location and Scope

• Location: U.S. Highway 8 from Karmel Avenue in Chisago City to Interstate 35.
• Components: roadway reconstruction, potential four-lane expansion, construction or reconstruction of frontage roads and backage roads, and realignment of local roads to consolidate or relocate access to and from U.S. Highway 8.
• Additions: pedestrian trails and bike trails along and across the project area.

Conditions and Timing

• Availability depends on nonstate funding commitments identified by the Commissioner of Management and Budget.
• The appropriation is available until project completion or abandonment.
• Bond sales occur as determined by the Commissioner of Transportation, within statutory and constitutional guidelines.

Relation to Existing Plans and Law

• The bill shifts spending planned for resurfacing in the DOT’s Metro District 10-Year Capital Highway Investment Plan (2020–2029) away from resurfacing and toward the reconstruction project, potentially altering the funding mix for the highway program.
• It creates a dedicated funding path via trunk highway bonds and specifies use of bond proceeds for the reconstruction project.

Significance

• This proposal uses bond financing to accelerate a major highway reconstruction project and to provide multi-modal improvements (pedestrian and bike facilities) along the corridor.
• It ties the project to nonstate funding commitments and changes how other planned maintenance spending is allocated.

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Relevant Terms - Marked U.S. Highway 8 - reconstruction - Karmel Avenue - Chisago City - Interstate 35 - pedestrian trails - bike trails - crossings - four lanes - frontage roads - backage roads - realignment of local roads - access management - trunk highway fund - bond proceeds - bond sale - nonstate resources / nonstate sources - preddesign / design / engineer / construct - appropriation - Commissioner of Transportation - Commissioner of Management and Budget - Minnesota Management and Budget - Department of Transportation - Metro District 10-Year Capital Highway Investment Plan 2020-2029 - resurfacing - supplement appropriations